Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $120,000. Galvanized Products is planning to borrow one-fourth of the purchase price from a bank at 13% compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $5,500 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $28,000 per year to maintain the system but will save $51,000 per year through increased efficiencies. Galvanized Products uses a MARR of 17%/year to evaluate investments.
Required:
a. What is the present worth of this investment?
b. Should the new computer system be purchased?
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 08:30, hartzpeyton136
Match each item to check for while reconciling a bank account with the document to which it relates.(there's not just one answer)1. balancing account statement2. balancing check registera. nsf feesb. deposits in transitc. interest earnedd. bank errors
Answers: 2
Business, 22.06.2019 13:30, starlodgb1971
Tom has brought $150,000 from his pension to a new job where his employer will match 401(k) contributions dollar for dollar. each year he contributes $3,000. after seven years, how much money would tom have in his 401(k)?
Answers: 3
Business, 22.06.2019 23:30, katiebaby4109
Sole proprietorships produce more goods and services than does any other form of business organization.
Answers: 2
You know the right answer?
Galvanized Products is considering purchasing a new computer system for their enterprise data manage...
Questions in other subjects:
Geography, 18.01.2021 03:00
English, 18.01.2021 03:00
Mathematics, 18.01.2021 03:00
History, 18.01.2021 03:00
Mathematics, 18.01.2021 03:10
